Ann: Letter to Shareholders, page-28

Unfortunately these wells don't supporting or "shielding" each other properly.

As discussed a couple of times, the current well setup was planned and designed at a very early exploration phase with limited knowledge what actually to expect 2km below surface and it turns out, that this setup is far from optimal or even good to get over the commercial threshold...

K1 placed between K2 and K3 has had a minor frac in the Vu-Upper coal (460 bbls compared to 1,800 bbls @k2 and 1,780 bbls @K3) and therefore the K1 drainage area is very limited also and has only a minor (if any) overlap with the drainage areas of K2 or K3. This means (in my opinion) K1 can't support K2 or K3 properly (and K2 and K3 can't support/shield each other anyhow because they are to far away from each other...)

K4 is more or less a failure and can't support the other wells.

So, we only get the "commerciality" if one of these wells get over the line more or less unsupported resp. alone...

From their current announcements probably K3 will be the well in question and it seems that in 3-4 months (of uninterrupted dewatering) from now, we will be there!

I don't think they drill more wells before we pass the threshold (and it seems, it's not necessary). The critical question imho is, if they can maintain a period of uninterrupted dewatering.

The "fundamentals" are really compelling!! I'm exited about their last presentation!!

http://www.strikeenergy.com.au/wp-c...lian-Domestic-Gas-Outlook-Conference-2017.pdf

With all their hard-won knowledge, they will probably provide a much better development plan and well set-up in the future. This project has everything to be a major (life changing) success in the coming years...!

All imho of course...